Rich, Richer. Poor, Poorer
Apparently the wealth gap is growing in this country, as the rich get richer and the poor get poorer.
So says the Broadbent Institute, supporting its case with StatsCan numbers. Canada’s poorest 10% saw their net worth plummet some 150% since 2005, while the top 10% jumped nearly 42% during the same time, with a median net worth of $2.1 million.
While a growing income gap has been well reported, the wealth gap is an even broader measure, taking into account all assets, including housing and investment, minus debts.
“Contrary to rosy reports of rising net worth and a post-recession recovery, these new numbers sound the alarm on Canada’s wealth inequality problem,” says Rick Smith, executive director of the Ottawa-based think tank, in a Toronto Star article.
By 2012, the bottom 10% saw their debts outweigh their assets by $5,100. Seven years earlier, this number was only $2,000. The bottom 50% of Canadians own just 6% of the wealth, while the bottom 30% own just 1%, the institute says.
“Looking at this broad picture of wealth using new Statistics Canada data released to the Broadbent institute, this report shows deep and persistent inequality,” the institute adds. “This unequal distribution . . . challenges the narrative that suggests Canadians are getting wealthier across the board.”
If you find your own wealth gap growing, with debts overwhelming your assets, then come to Richard Killen & Associates for a free consultation, to see how you can start trending in the right direction.